AE Knowledge Centre
Throughout 2012 and into 2013 Ceridian has built up a wealth of experience on auto-enrolment though research, discussions with our customers and successful implementations of our Auto-Enrolment solution along with strong relationships forged with pension providers and The Pensions Regulator.
Since the launch of auto-enrolment in 2012, a number of articles have been published that detail the complexity that surrounds auto-enrolment and the impact it will have on organisations.
To help organisations with their understanding of auto-enrolment, Ceridian has centralised its learnings into a new Auto-Enrolment Knowledge Centre.
The Knowledge Centre has been built to provide you with timely and accurate responses to questions on auto-enrolment legislation and information on Ceridian’s award winning Auto-Enrolment solution.
It includes Frequently Asked Questions with answers that are not only factually correct, but also draw on our experiences with a large number of customers. Or, if you’d prefer to talk something through with us, you can call us on 0844 893 1556.
For the majority of UK organisations auto-enrolment will have significant impact both financially and on business processes. As an HR & Payroll company Ceridian understands the central role that payroll must play in the auto-enrolment process. The Knowledge Centre team will be here to give advice on the impact and discuss how you can reduce this through the use of technology and good practice.
Starting from this month, we will be publishing some of the most Frequently Asked Questions here in Connection.
This month’s featured FAQ’s…
- Who is eligible for pension auto-enrolment?
- What is the impact on employees already in a pension scheme provided by the employer?
- How often do I need to assess my workers?
- What is Ceridian’s solution for Auto-Enrolment/Pension Reform?
Who is eligible for pension auto-enrolment?
Workers who are not eligible for automatic auto-enrolment will fall into one of two categories. They will be either a “non-eligible jobholder” or an “entitled worker”, depending on their level of earnings and their age.
Non-eligible jobholders are aged between 16 and 22, or above state pension age and 74, and their qualifying earnings are above the trigger or they are aged between 22 and state pension age, and their qualifying earnings are below the trigger. They do not need to be automatically enrolled but have the right to opt-in to a scheme. If they do so, the employer must contribute. Entitled Workers are aged between 16 and 74 and their qualifying earnings are below the lower limit. They do not need to be automatically enrolled but have the right to join a workplace pension scheme, although the employer is not required to contribute.
What is the impact on employees already in a pension scheme provided by the employer?
1) If an employee wants to use their existing pension scheme for auto-enrolment, the employer must assess whether their existing pension scheme meets the qualifying scheme criteria. If an employer’s existing pension scheme is not a qualifying scheme, it must either make changes to the existing scheme or use a different scheme.
2) Even if it is not necessary for the employer to make changes to the scheme itself , the employer will have to:
- provide those employees already on the scheme with certain specified information
- auto enrol any existing eligible jobholders who are not already members of the scheme and
- auto enrol any eligible jobholders who join the organisation after the staging date.
How often do I need to assess my workers?
There are a number of dates on which an employer will have to assess a worker. They are as follows:
- The employer’s staging date, for a worker already in employment on that date.
- The first day of employment, for a worker who starts employment after the employer’s staging date.
- The date of the worker’s 22nd birthday, where this occurs after the employer’s staging date.
- The date of the worker’s 16th birthday, where this occurs after the employer’s staging date.
- The date they receive an opt-in or joining notice from a worker.
- The deferral date, if an employer has chosen to use the postponement provision for a worker.
- The day after the transitional period has ended, if an employer has chosen to use the transitional period for defined benefit or hybrid schemes.
- The first day of each pay reference period, where the first assessment identifies the worker to be a non-eligible job holder or entitled worker.
- Eligible jobholders can at any point opt-out while being an active member of a qualifying scheme. In this case the date will be recorded to mark the employee for triennial re-enrolment purposes.
What is Ceridian’s solution for Auto-Enrolment/Pension Reform?
Ceridian offers two solutions to help employers comply with Pension Reform; Auto-Enrolment and Auto-Enrolment Essentials.
Auto-Enrolment provides an end-to-end solution comprising the following:
- Automated and ongoing assessment of workers’ eligibility for each payroll run.
- Automatic enrolment of eligible job holders and calculation and deduction of pension contributions.
- Automatic calculation of pension refunds for opt out.
- Administration and communication of statutory employer notices.
- Secured employee and employer self service with 24/7 web access to all pension related information.
- Built in standard reports and data export to the pension provider, within Ceridian Online Reporting.
Auto-Enrolment Essentials provides assessment and automatic enrolment, but excludes self-service.
Watch out for more auto-enrolment FAQs next month…